Process costing techniques should be used in assigning costs to products

Question

Quizplus · Accepted Answer

Process costing is best used for products that are composed of homogeneous units, such as a batch of identical items being produced in a continuous process. This allows for the cost of each unit to be easily calculated and assigned, resulting in accurate and uniform product costs. It is not the best choice for the other options listed, as job costing would be more appropriate for products manufactured on each order received and standard-costing techniques would be more appropriate when costs are more predictable and uniform.

Process Costing Techniques Should Be Used in Assigning Costs to Products